Things change quick in the market and now it's the QQQQ that's showing the first relative, negative divergence. I'll have to take a quick look at the components. I'm guessing this will continue to develop and lead to some downside here.
5 years ago
12 comments:
Transports have been trying to pull the market with it to the downside. It looks like the momentum might finally be taking hold. Of course unless the FED takes action and tries to plug the leaks.
Looks like we have some people trying to front run the 2:00 run. They started it early by about 10 minutes or so.
New day, new month, but still looks to be turning out to be another frustrating day to be short on the markets.
.. the SPY did 'brake' last Thursday, right?
BRANDT. What is WRONG with THIS market? It has been going SIDE WAYS, and just UP and DOWN in general!
I am getting REALLY tired of this!
meeeee,
I think the fact you're calling it a market is a problem. It's a propaganda tool, the FED decides at which level it wants it at that time and takes it there will all the free money in the world.
Guys, are you joking around? This is the stage 3 distribution phase. It happens at tops and it takes time. It is meant to fake people out and frustrate them. Next is the stage 4 sell off. Don't lose your heads now.
I think that we have little wars breaking out all over between the FED, Wall Street, Foreign Markets and Governments in general. I don't think anyone saw the currency war that is breaking out and could be bad for our position in the short run. If the dollar continues to weaken as a result of others influence, we may see a decouple from the market. This may be the only thing that saves us. These end of the day sell off for 15 minutes are really just pathetic. I am starting to wonder if the big boys are churning the market trying to regain their short positions. It may take them awhile to do this but, at least they know what they are doing and have the money to influence the market. We have had some waterfall selloffs, only to have them stopped in their tracks. Every little hint of a market selloff lately is headed off at the door.
Jack,
As far as i'm concerned 3C has shown the market is going down, and nothing but. So it had better go down, especially after a month and a near 900 point up move on the DOW! I even asked Brandt earlier if the fact that 3C seems to have called the strong $dollar very wrong, does this mean our short equities, short gold trades and he said no.
Surely, if the 'game has changed', the 'smart money' would be accumulating and 3C would be showing this?
Either way, with oil well above $80 a barrel (did 3C actually see strength in oil?) that is economically bad.
and, yes, it is pathetic that we get these end of day sell-offs by the 'smart money' that 3C sees... and, yet, the next day it's as if the whole system is 'reset' and the market recovers magically, normally in the futures. Rinse and repeat at nauseam.
The Fed wasn't able to stop the May decline and they won't be able to stop this one.
I don't believe that the Fed can announce a proper QE2. If they do it's game over. You will get a pop and drop situation. They would rather try to bluff their way through this poker game than show the weak hand that they have.
The thing is that most in the biz know the weak hand that the Fed is holding and are ready to call their bluff. The smart money has been getting out of the market as fast as they can lately along with insiders.
QE2 is a bluff and if they actually do it, so help the Fed. It will be a big mistake.
The weak $dollar is having world wide repercussions, so to weaken it further by quantitive easing (printing money out of fresh air) would destroy it... and rightly so.
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